Which of the following definitions of decision variables requires the decision maker to not enforce an integer solution?
a. The number of houses to build in a new neighborhood
b. The number of pounds of products to be produced in a week's time
c. The number of airplanes to produce during a year
d. All of the above
B
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M&M's Proposition II suggests that in a world of no taxes and no bankruptcy, ________
A) no matter what the debt-equity ratio is, the Ra or WACC of the firm increases with debt B) the value of the firm is sensitive to the funding choice between debt and equity C) in simple terms, as the firm adds more debt to the financing mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt D) Statements A, B, and C are all incorrect.
Most home insurance policies provide coverage for
A) earthquake damage. B) liability. C) flood damage. D) additional personal property floaters.